How important was government policy in shaping changes to patterns of trade in the years 1763-1914?

How did Britain emerge from the Seven Years War with France?

victorious but indebted → debt 157% 1763, 260% 1821

What was a recurring theme behind British economic policy?

cost of maintaining land and sea forces across the globe
→ funding European countries to fight France, maintaining naval squadrons, struggled paying for American War of Independence, French Revolutionary Wars and Napoleonic Wars

What was initial government policy?

protectionist and mercantilist
→ stifled trade and alienated colonies causing American War of Independence and pushed Ireland towards rebellion

What was adopted over time?

a policy of free trade, using diplomacy and coercion

What did the standardisation of trade in the 19th century do?

suited British merchants
→ produced manufactured goods cheaper than rivals
→ mid-19th century = trade dominance grew beyond directly managed colonies into China and South America

What was British dominance threatened by and what impact did this have on colonisation?

other European powers seeking increased geopolitical influence - countries in Europe and Britain started to see colonies as ideologically valuable = rush to claim lands, especially in Africa, often with weak reasons

What did British involvement in the slave trade begin with?

voyages of Elizabethan seafarers in the 16th century

What had not significantly changed by the 18th century?

the fundamental nature of the trade

What was the nature of the slave trade?

vessels set sail from English ports → traded goods e.g textiles, alcohol and firearms for slaves at West African ports → shipped across Middle Passage to Americas → survivors = mainly destined for Caribbean → resold and shipped e.g to West Indes, Spanish America or New England → slavers took cargo or raw materials e.g sugar and cotton → returned to port

What shows why British ships dominated the slave trade by the mid-18th century?

- valuable part of Britain's overseas empire → enormous profits
- 1798 the 'Lottery' from Liverpool, owned by banker and mayor Thomas Leyland, cargo of 453 slaves sold in West Indies, voyage = £12,091 profit (£50pp)

Who did the slave trade directly enrich?

- the slave traders and the ports they sailed from
- Bristol, Liverpool, Glasgow and smaller ports flourished

What were the (port) cities full of?

middlemen → merchants and agents for plantation owners buying and selling ships, trade goods for Africa, supplies for plantations and sugar imports

Who was the Caribbean island of Nevis largely owned by?

handful of Bristol families e.g the Pinneys who had business in Bristol

By the 1790s how many slave ships sailed from Liverpool on the triangular trade?

around 120-130 per year → majority of all European undertaking slave voyages

What different groups of people benefitted from the slave trade?

- slave traders and middlemen (never shortage of demand for new slaves)

- merchants/agents - plantation owners get rich buying and selling shops, trade goods for Africa, supplies for plantations and sugar imports 
- British gentry indirectly → much capital used by traders provided on credit by bankers
- government through taxes and tariffs - finance Royal Navy and European Wars

How did Britain's involvement in the slave trade impact the Royal Navy?

created a large pool of skilled sailors who could be recruited during manpower shortages

Why might it be difficult to abolish the slave trade?

the direct or indirect involvement of so many of the country's ruling class

Give examples of the ruling class involvement with the slave trade.

- 1766 'The Gentleman's Magazine' = 'upwards of 40' parliament members planters/interests
- William Beckford (twice lord mayor of LDN) = thousands of acres in Jamaica, 2 brothers = seats
- Bank of England governor 1783-95 Sir Richard Neave chaired society of West Indian Merchants → pressure group for West Indian planters
- CofE owned Codrington plantations on Barbados - 400 slaves

Who organised the first abolitionist movement in Britain?

the Quakers → first petitioned parliament 1783

What was a major breakthrough in 1787?

Quakers joined with other non-conformist groups and Willian Wilberforce persuaded to lead abolition parliamentary campaign

What did the abolitionists do?

- grass-roots campaign = pressure on government
- gathered evidence of the horrors of slavery → exposed to public (pamphlets, posters, books, debates)
- evidence and prime minister (friend William Pitt the Younger) = Wilberforce launched parliamentary campaign 1789

Why did parliament initially repeatedly vote against Wilberforce's bills?

- bad timing
- French monarchy = bankrupt trying to match British naval power
→ revolution 1789, 1792 = France becomes a republic = hostility
- slave rebellion on Saint-Domingue - French republic emancipated slaves, Britain attempted to seize lucrative sugar and coffee slave plantations IF FRANCE SUPPORTED ABOLITION BRITAIN WOULD NOT
- economic pressures enhanced already volatile political environment - abolitionists cannot be seen as pro-French

How had the situation changed in favour of the abolitionists by 1802?

- British hopes seizing Saint Domingue receded - loss of life due to disease and defeats (free slaves)
- Napoleon in power in France - sent expedition to restore slavery
- ex-slaves resisted - British supported to undermine French = abolitionists against French
- public support revived

What happened in 1804?

Wilberforce passed bill abolishing slave trade through House of Commons - defeated in House of Lords

How did the abolitionists capitalise on the situation changing in 1806-7?

- 1806 = Foreign Slave Trade bill → prohibited British supplying slaved to French colonies
→ British ships already not permitted to trade with them during war but sailed under America flag
- widespread public support = 1806 general election more abolitionist MPs elected
- 1807 both Houses of Parliament passed Slave Trade Act - ending Britain's role

What role did economic factors play in the abolition of the slave trade in 1807?

- 40% income of Bristol's population in 1780s came from trade
- losses to foreign privateers during wars, threat of disease, slave rebellions = uncertainty
- 1/10 ships in 18th century would lose its owner profit
- 1778 merchants in Liverpool lost £700,000

Did slavery wither away without the trade to sustain it?

no - occurred in West Indes until 1834
→ emancipated by government - spent £20m (40% expenditure that year) in compensation for the 'property' of owners of about 700,000 slaves

How did the changes in trade impact Britain?

suited British merchants = cheapest manufactured goods (imported cheap primary materials)

What is an example of frenzied colonisation?

scramble for Africa (European powers)

Briefly describe Bristol and the slave trade.

- vested interests - many benefitted e.g shipbuilders, merchants, slavers
- merchandise specially aimed at 'Guinea trade' e.g Warmley Brass Company = cooking pots
- active abolitionists within 10 years e.g Anglican Dean and Equiano, first black African to publish attacks against
- some condemned without supporting abolition - bill for abolition failed 1791

What theory dominated economic thinking between the 16th and 18th centuries?

mercantilism → wealth created when a country achieved a positive balance of trade (poorer = make up the difference) → inflation if hoarding, use surplus go invest overseas

What had keen observers such as businessmen and politicians seen?

silver mines in America = Spanish financed an empire 

→ real beneficiaries were international merchants 

Who was mercantilism challenged by?

economic theorist Adam Smith (1776 The Wealth of Nations)

What was Smith’s basic premise?

giving everyone freedom to produce and exchange goods as they pleased (free trade) and opening the markets up to domestic and foreign competition, natural self-interest would promote greater prosperity than with government regulation 

What was Smith's famous example?

butcher supplies meat for profits → at a price customers willing to pay so both benefit - government steps in when businesses act on short-term interests

What were tariffs designed to do?

give British goods, especially agricultural goods, a commercial advantage

What had Britain's mercantilist trade policy done?

triggered revolution in the Americas and caused issues in the first colony, Ireland

What were the main issues with mercantilism?

tariff wars = chokes trade

Why was the adoption of free trade slow?

- tariffs gave British goods (especially agricultural) a commercial advantage
- many MPs = wealthy landowners - so direct interest in supporting mercantilism

How was Irish competition reduced?

- English landowners used influence in parliament (produce similar goods to England)
- laws of 1665 and 1680 prohibited importation of cattle, meat, butter and cheese into England from Ireland

Despite restrictions how did the Irish economy continue to grow?

- large estates, grazing land, cheap labour
- profited from British wars of the 18th century (sold to Navy and armies)
- after LDN, Dublin was 2nd largest and most prosperous city in Empire 1750
- 1750 trade surplus = £400,000, 1790 = £1.1m

What led to (slow) progress in removing Irish trade restrictions?

- 1778 Irish Volunteers formed - demanded removal
- consulted Adam Smith who called the restrictions 'unjust and oppressive'
- 1779 British MPs pressed claim - embarrassing PM Lord North
- largely = protests by Irish politician Henry Grattan

What happened when and after the British Parliament met on 25th November 1779?

- North resolved to remove every Irish grievance overe commerce
- following months = several Acts removing individual trade restrictions
- put Ireland on par with GB, but excluded from the area of the East India Company's monopoly

What was a victory for proponents of free trade?

granting Ireland free trade did not lead to collapse of prices for agricultural goods due to massive demand generated by wars with France

What happened when war with France ended in 1815?

- protectionist interests in parliament = Corn Laws - keeping grain prices high by excluding foreign grain from British markets
- wealthy landowners did not want less profits for estates despite interests of successful Tory PMs including Pitt, Canning, Liverpool and Huskisson

How did the political landscape change after the election of the Whigs in 1830?

parliamentary reform - Representation of People Act 1832 = 60% extension in voting numbers
→ gave manufacturers and consumers greater role in determining trade policy

How did the Anti-Corn Law League become the leading proponent in the campaign to repeal the Corn Laws?

- from April 1939 published anti-Corn Law circular, evolved into weekly 'The League'
- hundreds of books and pamphlets (on free trade) distributed cheaply after penny post introduced April 1840
- high levels of subscriptions = employed public speakers
- anti-Corn Law songs and dances and events e.g Anti-Corn law Bazaar held at Manchester Theatre Royal 1842

How did Peel lead to dismantling of laws supporting mercantilism and protectionism?

- Sir Robert Peel founded Conservative Party 1834 - coalition of 'Old Tories' opposed free trade and 'Peelites' who supported it = Peel kept united, he himself wished for free trade
- 1841 won majority and became PM
- support from progressive Whigs and Liberals = over 1,200 import tariffs abolished 1842-46

What are tories?

- support monarchy and traditional way of life
- oppose enlightenment ideals
- have power 1783-1830

What are whigs?

- represent progressive policies (e.g free trade/abolition of slave trade)
- initially wealthy landowners influenced by enlightenment - but later attract manufacturers/middle-classes

What were colonies seen as under mercantilism?

dependent trade partners → negative BOT in colony so positive in country

In Britain what were the most important expressions of mercantilism?

Navigation Acts passed 1651-73

What were the rules under the Navigation Acts?

- British colonies in Asia, Africa and America could import and export goods only in English vessels → 3/4 each crew = English

- goods imported from colonies = English vessels, from foreign countries = English vessels or where they originated

- in effect gave English subjects and ships monopoly of trade between colonial ports and Britain

- foreign vessels excluded from colonial ports - could only trade at those in British Isles

- “enumerated” certain colonial products - could only be exported from place of production only to another colony or England - initial list = tobacco, sugar, indigo, cotton, dyewoods- extended to include naval stores, hemp, rice, molasses, beaver skins, furs, copper, iron and lumber 

- colonies could import Asian goods and European manufacturers only from England 

What can the Navigation Acts be interpreted as?

preventing the development of more sophisticated colonial economies 

Under the Navigation Acts, how did Britain adopt a soft-touch approach?

- salutary neglect = not strict, smuggling = rife
- customs officials typically British - deputised tax collection

When did the soft-touch approach change?

1763 British government created large standing army in North America
→ in debt due to 7 Years' War = laws and acts to get revenue to pay for the army
→ basically making North America colonies pay for their own protection from France

How was the force of the Royal Navy used and how was it anathema to the merchants of New England?

- strictly imposed Navigation Act, seizing ships and impressing crews
- depended on trade in Caribbean - previously profitable rates = closed/ disadvantageous

Which protectionist laws remained after Peel's 1842 budget?

the sugar duties and Corn Laws

Why were the sugar duties and Corn Laws important?

SUGAR DUTIES - preferential rates for sugar producers in British West Indies so seen as essential since after 1833 slave trade abolition = uncompetitive compared to slave colonies e.g Cuba and Brazil
CORN LAWS - acquired symbolic importance for many landowners

What led to Peel abolishing the sugar duties and Corn Laws?

- 1845 onwards potato crop failed in Ireland = food shortages (Potato Famine)
- repealing Corn Laws = lower grain prices and confirmed belief legislations not necessary for Britain's prosperity (1841 Peel inquired about prices imported from Europe and not low enough to hurt British farmers)
- pushed Importation Act 1846 through Parliament with Whig support (unpopular with party)

What did the abolition of the sugar duties and Corn Laws lead to?

- abolition of sugar duties = economic decline in West Indies
- did not improve situation for Irish poor

What happened after Peel's resignation?

Whig PM Lord Russell expanded free trade policy with support of Peelite Conservatives - dismantled remained tariffs and repealed Navigation Acts

By dismantling the Navigation Acts, how were Russell and his supporters effectively prioritising free trade over national defence?

another aim of NA = increase British ships for larger pool of manpower for navy
→ even Adam Smith supported navy > merchants

When were the Navigation Acts repealed?

1849

Who was the ending of mercantilism a defeat and victory for?

- defeat for 'landed' interest
- victory = 'steam' and 'cotton' industrialists = at heart of Industrial Revolution = factories 1830s
→ argued with cheap food = fit and healthy workforce, with stable wages and food prices
→ others = would bring free and universal political institutions, freedom/hunger
OVERALL = new era of global supremacy

What happened five years after the repeal of Corn laws?

the Great Exhibition in Hyde Park → display of Britain's global industrial supremacy

How has Britain have economic and military supremacy?

- wars in late 18th and early 19thC = eliminated trade and war rivals in Europe
- 7  Years War and Napoleonic Wars global military power of France eliminated
- victories at Waterloo and Trafalgar = Britain made dominant military power
- first European country to undergo an industrial revolution and religious commitment

How did British businessmen benefit from the ending of mercantilism?

- only industrial power = cheap and well-made goods on large scale, global operations - trade opportunities everywhere
- free trade = could seek high-demand commodities such as cotton, wool, tea and coffee

By 1851 how was Britain the workshop of the world?

produced 2/3 world's coal, 1/2 cotton cloth and iron

What was the value of British exports in 1825, 1845 and 1869?

1825 = £38 million
1845 = £60 million
1869 = £190 million

Why did the value of exports increase?

increasing contact with countries outside empire - particularly North America and Latin America

Where suffered greatly during this new free trade era?

the Caribbean - end of economic preference

How was the USA Britain's chief market?

- until after 1861-65 Civil War America dependent on Britain for textiles and most manufactured goods
- Britain imported 90% tobacco from the USA and invested in USA, particularly in ranches
- suited Britain - purpose of repealing CL = developing American market?

How was Latin America an important area for British businessmen?

- demand for textile goods important for Lancashire textile factories
- as trade increased - consuls appointed to commercial bases dealing with grievances
- until 1860s Brazil = main trading partner (50% imports) after = Argentina
→ by 1914 Britain had 4x investment in Latin America as the USA

By 1824 how was there lots of British people in Latin America?

nearly 100 commercial houses in South American cities, over 3,000 British in Buenos Aires

How were West Indies colonies badly hit by the abolition of slavery and sugar duties?

- many plantation, already competing with South America, closed 
- labour = difficult, free slaves did not want to return, indentured labour
→ 36,000 liberated Africans from St Helena and Sierra Leone and 100,000 Asians brought

Where were alternative sources for sugar sought in?

Natal, Mauritius, Fiji and Queensland

How were the Americas clearly the most important area for British trade?

1865-1914, 51% of British oversea investment went to the Americas (particularly for sugar and coffee)

How was India developed in terms of territorial acquisitions during the early 19th century?

- most for strategic advantage or increasing status of commander
- 1840s Sind and Punjab annexed - controlling India's NW border
- annexations in Burma = protecting India's hinterland in east

How was India a liability for Britain?

- over 2 million British died in India during 19thC, mainly from disease
- cost of maintaining large numbers of soldiers = huge

When did India become more important for the British economy and why?

after opening of Suez Canal - investment increased - bridges, railways, irrigation, transport

How did the relationship with India benefit the metropolitan power and not the Indians?

- textile industry virtually de-industrialised to benefit textile factories in Lancashire
- new crops introduced - most financial benefits for British investors

How was China replaced as Britain's source of tea?

Assam developed for tea - 137m pounds weight vs 24m from China

What else became important sources for Britain?

Indian fute and cotton

How did India become an important source of labour for Britain after the abolition of slavery?

- provided over 25,000 Indians as indenture labour by 1838
- providing 18,000 labourers to the sugar industry in Mauritius
- peak 1858/9 53,000 overseas - 45k = Mauritius

Did Britain make India a real economic asset?

no and people continued to suffer from periodic famines

What became more important than colonies interests when Peel decided to move towards free trade?

cheap food and Atlantic trade - except India colonies didn't exist or minimal economic importance

What ensured links with colonies remained?

security interests and importance of currency, banking, insurance and shipping links

How did trade with Canada change?

closer ties with USA = tariffs against British goods but trade remained high

How did trade with Australia change?

developed woollen industry = main supplier to Britain → £39m 1851, £400m (60% exports) 1886

Why did the importance of New Zealand and Australia grow?

development of refrigerated ships = could export meat

How was the primary motive of British imperialism in China in the 19th century economic?

high demand for Chinese tea, silk and porcelain

Why was a system of barter based on Indian opium created?

Britain did not possess sufficient silver to trade with the Qing Empire

What brought a generation of Chinese afflicts and social instability?

exponential increase of opium in China between 1790 and 1832

Why were the British given Hong Kong and trading rights in the ports of Canton and Shanghai?

a result of the infamous Opium Wars that came from clashes between the Qing government and British merchants

How did Britain also become the world's banker?

- London = financial centre of the world
- over half money invested went to areas outside the empire
→ investors sought new sources of materials and markets = surplus

What did Palmerston claim about Foreign Office time?

- good deal used dealing with complaints of merchants abroad - willing to intervene
- attitude of government = 3 wars fought 1839 - 1860 to enforce opium trade

Why was the 1899-1902 Boer war fought?

partly to improve position of gold companies in the Transvaal - taxed heavily and excessive payments for dynamite etc

How is it clear that areas outside the empire mattered more than the empire itself?

the figures for Britains trade and capital investment
- at no time during the Victorian era did the imperial share of trade exceed 35% and for half this time it was less than 30%
- 1865-1914 60% new capital investment went outside the empire
- British exports = 1846-50 27% empire, 1896-1913 34% empire
- % of staple commodities empire exported to Britain low in proportion
- empire was growing and economy expanding but empires share of trade was declining